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S5769 - Details

S5769 - Summary

Eliminates state regulation of voice over internet protocol service in order to facilitate competition and ensure consumers receive the maximum benefit of competition.

S5769 - Sponsor Memo

BILL NUMBER:S5769
TITLE OF BILL:
An act
to amend the public service law, in relation to eliminating state
regulation of VoIP service in order to facilitate competition and ensure
consumers receive the maximum benefit of competition
PURPOSE:
Voice over Internet Protocol (VoIP) is a technology
application that uses a broadband Internet connection to transmit
voice telecommunications over the Internet. The rates, terms and
conditions of VoIP service, which has been offered in New York State
since the early 2000's, are not regulated.
JUSTIFICATION:
VoIP service converts voice
communications into digital
packets that travel over the Internet. When a VolP call is placed to
a traditional telephone number, the digital packet is converted to a
traditional Public Switched Telephone Network (PSTN) signal before it
reaches its destination. VoIP allows a call to be made directly from
a computer, a special VoIP phone, or a landline phone connected to an
adaptor.
VoIP brings increased efficiency, reliability and functionality to

voice communications. The Internet's use of computer processing
allows for decreased use of transmission facilities, and automatic
rerouting around malfunctioning routers or damaged lines without
relying on a separate telephone signaling network. Since the cost of
computer processing is decreasing and the demand for communications
bandwidth is increasing, IP networks offers a more economical and
robust means for providing communication connections than the
traditional networks.
This legislation is especially important for consumers living in rural
upstate New York who have yet to enjoy the benefits of broadband and
voice competition. Adopting the legislation could help rural
consumers to benefit from voice competition, rural telecommunications
companies to extend broadband more affordably, remote businesses to
transform the way they do business, rural communities to connect to a
new world of remote job opportunities, and rural economies to become
an engine for higher paying information age jobs. Rather than
outsourcing jobs oversees, some progressive companies are now using
VoIP to "home-source" jobs to rural communities.
This legislation will enable a consistent and predictable policy
framework and thus foster VoIP innovation to grown in New York.
SUMMARY OF THE BILL:
This bill updates the Public Service Law to
encourage the deployment of new technologies. The legislation does
not affect the assessment of E-911 fees, telecommunications relay
service fees, or federal or state Universal Service Fund fees on VoIP
service. Payment of intercarrier compensation that applies to a VoIP
carrier's use of the public switched telephone network is also
preserved. Finally, New York State consumer protections still apply
(e.g., unfair or deceptive trade practices, payment and/or billing -
request paper bill and/or pay by mail).
LEGISLATIVE HISTORY:
New legislation.
FISCAL IMPLICATIONS:
No fiscal costs to the state or localities. The state as a whole
should see increased economic activity and investment when the right
business model is developed to lure broadband investment in the state.
EFFECTIVE DATE:
This act shall take effect immediately.

S T A T E O F N E W Y O R K
________________________________________________________________________
5769
2011-2012 Regular Sessions
I N S E N A T E
June 15, 2011
___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the public service law, in relation to eliminating state
regulation of VoIP service in order to facilitate competition and
ensure consumers receive the maximum benefit of competition
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2 of the public service law is amended by adding a
new subdivision 28 to read as follows:
28. THE TERM "VOICE-OVER-INTERNET PROTOCOL SERVICE" OR "VOIP SERVICE"
WHEN USED IN THIS CHAPTER, SHALL MEAN ANY SERVICE THAT: (A) ENABLES
REAL-TIME TWO-WAY VOICE COMMUNICATIONS THAT ORIGINATE FROM OR TERMINATE
TO THE USER'S LOCATION USING INTERNET PROTOCOL OR ANY SUCCESSOR PROTO-
COL; (B) USES A BROADBAND CONNECTION FROM THE USER'S LOCATION; AND (C)
PERMITS USERS GENERALLY TO RECEIVE CALLS THAT ORIGINATE ON THE PUBLIC
SWITCHED TELEPHONE NETWORK AND TO TERMINATE CALLS TO THE PUBLIC SWITCHED
TELEPHONE NETWORK.
S 2. Paragraph d of subdivision 1 of section 5 of the public service
law, as amended by chapter 155 of the laws of 1970, is amended to read
as follows:
d. To every telephone line which lies wholly within the state and that
part within the state of New York of every telephone line which lies
partly within and partly without the state and to the persons or corpo-
rations owning, leasing or operating any such telephone line. NOTWITH-
STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NEITHER THE COMMIS-
SION, THE DEPARTMENT OF PUBLIC SERVICE, NOR ANY OTHER DEPARTMENT OR
AGENCY OF THIS STATE, OR ANY POLITICAL SUBDIVISION THEREOF, SHALL HAVE
AUTHORITY TO REGULATE THE ENTRY, RATES OR OTHER TERMS OF SERVICE OF
VOICE-OVER-INTERNET PROTOCOL SERVICE. PROVIDED, HOWEVER, THAT NOTHING
IN THIS PARAGRAPH SHALL AFFECT THE AUTHORITY OF THE STATE OR ITS AGEN-
CIES TO ENFORCE SUCH REQUIREMENTS AS ARE OTHERWISE EXPRESSLY PROVIDED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13156-01-1

S. 5769 2
FOR BY FEDERAL LAW, INCLUDING, BUT NOT LIMITED TO, CONNECTION TO 911
FACILITIES, THE COLLECTION OF ENHANCED 911 FEES, TELECOMMUNICATIONS
RELAY SERVICE FEES, OR FEDERAL UNIVERSAL SERVICE FUND FEES ON
VOICE-OVER-INTERNET PROTOCOL SERVICES THAT MAY BE DETERMINED TO APPLY,
OR BE CONSTRUED TO (1) MODIFY OR AFFECT THE RIGHTS, OBLIGATIONS OR
AUTHORITY OF ANY ENTITY, INCLUDING BUT NOT LIMITED TO THE PUBLIC SERVICE
COMMISSION, TO ACT PURSUANT TO, OR ENFORCE THE PROVISIONS OF 47 U.S.C.
251, 47 U.S.C. 252, ANY APPLICABLE TARIFF, OR ANY STATE LAW, RULE, REGU-
LATION OR ORDER RELATED TO WHOLESALE RIGHTS, DUTIES AND OBLIGATIONS,
INCLUDING THE RIGHTS, DUTIES, AND OBLIGATIONS OF LOCAL EXCHANGE CARRIERS
TO INTERCONNECT AND EXCHANGE VOICE TRAFFIC; (2) MODIFY OR AFFECT THE
AUTHORITY OF THE PUBLIC SERVICE COMMISSION TO IMPLEMENT, CARRY OUT, AND
ENFORCE SUCH PROVISIONS, RIGHTS, DUTIES, OBLIGATIONS OR TARIFF THROUGH
ARBITRATION PROCEEDINGS OR OTHER AVAILABLE MECHANISMS AND PROCEDURES; OR
(3) AFFECT THE PAYMENT OF SWITCHED NETWORK ACCESS RATES OR OTHER INTER-
CARRIER COMPENSATION RATES, AS APPLICABLE. NOTHING HEREIN SHALL BE
CONSTRUED TO AFFECT THE APPLICATION OR ENFORCEMENT OF OTHER STATUTES OR
REGULATIONS THAT APPLY GENERALLY TO THE CONDUCT OF BUSINESS IN THE
STATE, INCLUDING CONSUMER PROTECTION, OR UNFAIR OR DECEPTIVE TRADE PRAC-
TICES RULES OF GENERAL APPLICABILITY.
S 3. Subdivision 1 of section 90 of the public service law, as amended
by chapter 414 of the laws of 1981, is amended to read as follows:
1. [The] EXCEPT AS PROVIDED IN PARAGRAPH D OF SUBDIVISION ONE OF
SECTION FIVE OF THIS CHAPTER, THE provisions of this article shall apply
to communication by telegraph or telephone between one point and another
within the state of New York and to every telegraph corporation and
telephone corporation.
S 4. This act shall take effect immediately.

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